The Ulema Council of the Spiritual Administration of Muslims of Kazakhstan (DUMK) banned the use of cryptocurrency bitcoin.
As noted in their message, according to Shariah, any money must be issued and protected by the state.
"Bitcoin is not a national currency. Because it is decentralized virtual money, it is not guaranteed by state authorities and not protected by financial laws and real assets. At any moment, its market can rise or fall sharply, and people can suffer from it. Abu Ali Hasan al-Tawsi said, "For centuries, no one but the ruler has been given the right to issue money." (Sayruh al-Muluk, page 233)."
Also, bitcoin transactions take place in a closed format, which can lead to fraud and deception, which is also forbidden by Shariah, the DUMK said.
"Almighty Allah in the Holy Qur'an commands: "O those who believe! Do not devour your property among yourselves unlawfully, but only by trading by your mutual consent" (Sura al-Nisa 29).
Our Prophet forbade trade in unknown (from Muslim)", the religious organization added.
In addition, bitcoin as a currency or commodity is beyond the control of the responsible parties, which could eventually have a negative impact on the domestic economy and destabilize society.
"The Prophet said, 'You cannot harm yourself and others' (from Ahmad)," the DUMK wrote.
The organization also cited the example that major organizations such as the Fatwa Committee of Egypt, the Council of rendering fatwas of Muslims in Eurasia have banned the use of bitcoin cryptocurrency.
